Bosch Limited — Q1 FY25
Bosch Limited reported Q1 FY25 revenue of INR 4,317 crore, up 3.8% YoY, with EBITDA margin improving 70 bps YoY to 12%.
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Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
42%Questions answered6Evaded / deflected12Questions audited
Answered
Medium priority
What does power tools region mean for manufacturing and exports?
Asked by Pramod
Management clearly stated no new plants and confirmed exports from Chennai.
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Question
So what does it mean for. Is it in the sense you, the manufacturing operations will be set up by Bosch India in those locations, or you'll be exporting from here to those regions?
Guruprasad Mudlapur, Managing Director and Chief Technology Officer
There are no current plans for setting up any plants in any of these countries. All of them benefit from our current manufacturing plant, which is already in Chennai, in India. We will continue to export from Chennai to these regions.
Answered
High priority
Why are exports to parent tripling and imports doubling?
Asked by Pramod
CFO explained cost competitiveness and scaling driving exports; imports due to technology shift and localization ramp-up.
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Question
So there you talked about, exports to the parent, literally tripling in next four years as a resolution, and imports to the parent, from the parent, doubling up, more than doubling up. What is the thought process there?
Karin Gilges, CFO
We have worked in the last couple of years massively on our cost competitiveness. We are now scaling with our quantities, which helps us also to become cost competitive, and therefore, for certain volumes, like injectors, VE pumps, et cetera, India will also become very attractive.
Partial answer
High priority
How do localization plans impact gross margins over 12-18 months?
Asked by Gokul
Acknowledged localization improves margins but gave no quantitative impact or timeline.
no specific margin impact givenno timeline
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Question
So, in that context, can you just give an update on localization plans, and how does this impact our gross margins more from a 12- 18-month perspective?
Karin Gilges, CFO
Regarding the gross margin and the localization, it is very clear for us strategically, we have to localize also to increase and to improve our gross margins. This is very clear.
Answered
High priority
Is the full-year growth expectation similar to FY2024 still holding?
Asked by Gokul
Confirmed full-year growth expectation unchanged, Q1 soft as anticipated.
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Question
But for the full year, you were expecting a similar performance as FY 2024. Does that broad expectation of growth still hold, or you're changing on that stance?
Guruprasad Mudlapur, Managing Director and Chief Technology Officer
Yeah, the broad expectation of growth for the year holds. There is change. We, like we had already sort of indicated, Q1 would be a sort of a moderate or very weak growth.
Evasive
Medium priority
Will CapEx need to step up to INR 500 crores+ for localization?
Asked by Gokul
Refused to quantify CapEx, gave a generic statement about spending when needed.
no specific numberno commitment to step-up
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Question
Would you be required to do a step up in your CapEx spends, maybe INR 500 crores plus, given you would want to accelerate your localization?
Karin Gilges, CFO
Whatever we have to spend to have a feasible and profitable localization, we will spend.
Declined
Medium priority
What is the content increase for two-wheelers due to OBD Stage II?
Explicitly refused to provide the number, promised to revert.
deferred to laterno number given
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Question
What are the estimated content increase for two-wheelers due to upcoming, stage B, with effective from April 2025?
Guruprasad Mudlapur, Managing Director and Chief Technology Officer
Okay, we have to get back to you on that. I can't give you an exact number, right now, but there is an increase, and we will get back.
Declined
Medium priority
What is the content increase for tractors due to TREM V?
Did not provide content increase numbers, offered to revert later.
deferred to laterno number given
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Question
What could be the content increase in tractors for Bosch Limited due to TREM V? How much of this content increase would be value added by Bosch?
Guruprasad Mudlapur, Managing Director and Chief Technology Officer
So, I would again say, TREM V has been postponed so far. ... There is again a change in the content per vehicle, and there is going to be a change towards the Common Rail systems there, but we will get back if necessary on the exact change in the content.
Declined
High priority
Will margins remain around current levels given technology change?
Asked by Viraj Kacharia
Explicitly declined to provide margin guidance.
refused guidanceno number given
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Question
So while localization may take some time to play out, would it be right to think that margins may remain around current levels, what we are, we've been reporting, given the kind of technology change?
Karin Gilges, CFO
Again, regarding margins in the future, we do not want to give this guidance. We would not like to give.
Answered
Medium priority
Is CapEx for localization also for export or only domestic?
Asked by Viraj Kacharia
Confirmed NOx sensor line includes export volumes, giving a concrete example.
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Question
Is the thought process largely towards localization or meet the requirement for the local market? Or now there's a change in thinking in terms of looking at export also?
Karin Gilges, CFO
Here, we get a certain export volume as well, because we need in the overall production network, there were volumes which we could bring to India, and therefore, we will get a line where we have India plus export volumes.
Declined
High priority
Will there be portfolio realignment announcements for listed entity?
Asked by Viraj Kacharia
Declined to discuss portfolio realignment, citing sensitivity.
refused to commentsensitive information
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Question
Any thought process in terms of whether any further businesses will be exiting from the listed entity or any businesses you think will be merged in the mobility segment into the listed entity?
Guruprasad Mudlapur, Managing Director and Chief Technology Officer
I do not want to speculate on things which are very sensitive information, so I would not want to comment on these things right now.
Partial answer
Medium priority
What caused the sequential increase in other expenses?
Explained the drivers but refused to quantify the amounts.
no quantificationrefused to quantify
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Question
In the quarterly numbers, the other expenses has gone up, sequentially as a percentage to sales. Any one-off expenses in the other expenses this quarter?
Karin Gilges, CFO
Yeah, exactly. So we had a one-off in the last quarter, where the other expenses of sales were very low, because we had there a Forex impact. And in this, of course, this quarter, we have the reversal impact, and we have one warranty case.
Evasive
Medium priority
What is the status of PLI DVA certificate and related CapEx?
Asked by Jai
Did not confirm DVA approval, declined to discuss CapEx implications.
no confirmationrefused to comment on speculation
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Question
If there's any details that can be shared on the kind of products that we are looking to localize, and what's the kind of incremental CapEx that the domestic listed company will commit to post this event going through?
Guruprasad Mudlapur, Managing Director and Chief Technology Officer
We have not officially got any confirmation from the ministry on DVA approval, although there are market speculations. ... We do not want to comment on that.